Chapter 13 Bankruptcy: How to Lift a Stay on Court Proceedings

Procedures to lift an automatic stay order during a Chapter 13 bankruptcy case.

The moment a debtor files a bankruptcy case, the bankruptcy court automatically issues what is called a stay order. The stay order requires all collection activities to cease against the debtor. Additionally, the stay order demands the suspension of any court proceedings until further order of the bankruptcy case. Finding yourself involved in some sort of court proceeding with an individual that files for Chapter 13 bankruptcy, you may wonder how to lift the automatic stay order.

Things You'll Need

• Motion to lift automatic stay order
• Order lifting automatic stay order

Instructions

1. Request a motion to lift automatic stay form from the clerk of the bankruptcy court. Bankruptcy court clerks maintain standard forms commonly used by parties involved with bankruptcy proceeds who are not represented by attorneys. Additionally, the main U.S. Bankruptcy Court website contains a library of forms.

2. Complete the motion form, following the instructions provided by the bankruptcy court clerk.

3. Identify the court proceedings under a stay order both through the official case caption and number. Set forth the name and address of the court where the case pends in suspension.

4. Send a copy of the motion to the debtor as well as the bankruptcy court trustee assigned to the case. The trustee is the court official assigned to oversee a case on a day to day basis.

5. File the motion with the bankruptcy court clerk. At the time the motion is filed, the court clerk provides you with a date known as an objection deadline. The deadline is the date by which any creditor, the debtor or trustee must lodge a written objection to your request to lift the stay order. Provided no objections are filed, the judge likely will lift the stay order.

6. Attend a court hearing scheduled by the judge if an objection is lodged. At the hearing, present evidence and argument supporting your position regarding lifting the automatic stay order. If the court agrees with your position, the stay order is lifted.

Tips & Warnings

• Consider retaining the services of an experienced bankruptcy attorney to assist you seeking a termination of an automatic stay order. Local and state bar associations maintain directories of attorneys practicing in different areas of the law. Contact information for these organizations is available through the American Bar Association.

• American Bar Association

• 321 N. Clark St.

• Chicago, IL 60654-7598

• 312-988-5000

• abanet.org

References

• U.S. Bankruptcy Code
• American Bar Association: Bankruptcy & Insolvency Litigation Committee
• "The Glannon Guide to Bankruptcy"; Nathalie Martin; 2006

Resources

• American Bar Association: Directory of State and Local Bar Associations
• U.S. Bankruptcy Court: Filing for Bankruptcy without an Attorney